Home Sectors Financial Services Current Fundamentals: East West Bancorp (NASDAQ: EWBC)

Current Fundamentals: East West Bancorp (NASDAQ: EWBC)

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East West Bancorp is in the financial services sector and banking industry. The company CEO is Dominic Ng. East West Bancorp Inc is the holding company for East West Bank, a full-service commercial bank with cross-border operations concentrated in the United States and China. Its reportable segments are Retail Banking, Commercial Banking and Other.

Previous Intraday Trading Performance:

The EWBC stock showed a previous change of -0.25% with an open at 44.96 and a close of 44.38. It reached an intraday high of 45.17 and a low of 44.21.

SeekingAlpha:  East West Bancorp: A Steady Fed Funds Rate Is A Recipe For Continued Net Interest Margin Improvement

Liquidity:

The stock has a market cap of $6.5b with 145.5m shares outstanding, of which the float is 143.9m shares. Trading volume reached 810,852 shares compared to its average volume of 849,905 shares. Based on the current average volume and close price, the trading liquidity is good.

Historical Trading Performance:

Over the last five trading days, East West Bancorp shares returned -0.29% and in the past 30 trading days it returned -13.79%. Over three months, it changed -14.37%. In one year it has changed -36.67% and within that year its 52-week high was 71.73 and its 52-week low was 40.05. EWBC stock is 10.81% above its 52 Week Low.

Our calculations show a 200 day moving average of 52.02 and a 50 day moving average of 48.67. Currently EWBC stock is trading -14.68% below its 200 day moving average and may not be a good opportunity to buy as it may continue to trend down.

SeekingAlpha:  East West Bancorp: A Steady Fed Funds Rate Is A Recipe For Continued Net Interest Margin Improvement

Earnings:

The last annual fiscal EPS for the company was reported at 4.81 that ended on 31st of December 2018, which according to the previous close, that is a PE of 9.23. Based on 9 analyst estimates, the consensus EPS for the next quarter is 1.23. The TTM EPS is 4.66, which comes to a TTM PE of 9.52. Historically, the PE high was 21.50 and the PE low was 9.23. If the stock reached its PE low, that would represent a price of 43.01, which is a decrease of -3.08%.

Below was the last reported quarterly diluted earnings per share:

1stQtr of 2019 (Reported on 04/18/2019): 1.12
4thQtr of 2018 (Reported on 01/24/2019): 1.18
3rdQtr of 2018 (Reported on 10/18/2018): 1.17
2ndQtr of 2018 (Reported on 07/19/2018): 1.18
1stQtr of 2018 (Reported on 04/19/2018): 1.28

The dividend per share is currently 1.10, which is a dividend yield of 2.48%. Also, the payout ratio is 23.61%, therefore the dividend is safe according to our calculations.

Base on our calculations, the intrinsic value per share is 95.75, which means it is possibly undervalued and has a margin of safety of 53.65%.

Indicators to Watch:

The current calculated beta is 1.61.

SeekingAlpha:  Merger Arbitrage Analysis And Spread Performance – June 9, 2019

Fundamental Indicators:

Based on last reported financials, the company’s return on equity is 16.57%, return on assets is 1.78%, profit margin is 35.80%, price-to-sales is 3.38 and price-to-book is 1.41.

Company Scores:

All scores are out of six:
 4  :Valuation Score
 3  :Past Performance Score
 6  :Financial Strength Score
 2  :Future Growth Score
 5  :Dividend Score
 4  :Overall Score

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John Jones
Worked for several Wall Street firms: Salomon Smith Barney, UBS, and Charles Schwab. Has developed skills and gained extensive experience over the years that is used today to uncover winning penny stocks.Also was an attorney for small businesses in Scottsdale, Arizona. That experience and understanding of law provides a unique perspective and edge in discovering quality companies in various industries.